IRS Declines Rubbing Salt in The Wound
There is really no excuse for people having gotten themselves in this situation. It is true that some facilitators have a sort of black box business model in which the money disappears when you sell the relinquished property. In that model, it’s none of your concern where the money is in the meantime as long as they deliver the target property. That is not the only model though. It is also permissible for the funds to be segregated in separate bank accounts and some facilitators are affiliated with major banks
Deemed Partnership
The case of Holdner v Com TCM 2010-175 is giving me pause. When I read what William Holdner and his son Randal achieved over the years in business I am very impressed. Mr. Holnder seems a much sharper businessman than I am. It makes me hesitate to criticize him as an accountant, which he also is. It’s just that I think he picked an unnecessary fight.
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.